Eli Lilly Acquires Centessa Pharmaceuticals for $6.3 Billion to Gain Narcolepsy Drug

Eli Lilly announced on Tuesday, March 31, 2026, that it will acquire Centessa Pharmaceuticals for approximately $6.3 billion in cash, or $38 per share, representing a 38% premium over the previous day's closing price. The deal includes contingent payments of up to $1.5 billion if Centessa's drugs receive U.S. regulatory approval, potentially bringing the total value to $47 per share. Centessa, a UK and Boston-based company publicly launched in 2021, has focused on developing experimental treatments for sleep disorders, particularly narcolepsy and conditions causing excessive daytime sleepiness. The acquisition represents a strategic expansion for Eli Lilly into the neuroscience and sleep disorder treatment market.

Acquisition Deal Terms and Structure

• ▪The Eli Lilly-Centessa Pharmaceuticals agreement includes additional payments if Centessa's drugs win regulatory approval in the U.S.
• ▪The total purchase price for Centessa Pharmaceuticals could be up to $47 per share with regulatory approval contingent payments.
• ▪The Eli Lilly acquisition of Centessa Pharmaceuticals values Centessa at $38 per share.
• ▪The regulatory approval contingent payments in the Eli Lilly-Centessa Pharmaceuticals deal could add another $1.5 billion to the transaction.
• ▪Eli Lilly announced on Tuesday, March 31, 2026, that it would buy Centessa Pharmaceuticals for roughly $6.3 billion in cash.

Centessa's Strategic Focus on Sleep Disorders

• ▪Centessa Pharmaceuticals has focused over the years on disorders that leave people struggling to stay awake.
• ▪Centessa Pharmaceuticals has headquarters in the United Kingdom and in Boston.
• ▪Centessa Pharmaceuticals was publicly launched in 2021.
• ▪Centessa Pharmaceuticals started with more than a dozen programs across a range of diseases.
• ▪Centessa Pharmaceuticals makes an experimental drug meant to combat sleeping conditions.

Market Valuation and Premium

• ▪The Eli Lilly purchase price of $38 per share represents a 38% premium over Centessa Pharmaceuticals' closing price on Monday, March 30, 2026.

Perspective of Eli Lilly

• ▪Eli Lilly sees the Centessa Pharmaceuticals acquisition as part of its broader expansion strategy.
• ▪Eli Lilly is expanding its portfolio through the acquisition of Centessa Pharmaceuticals and its narcolepsy drug candidate.

Perspective of Centessa Pharmaceuticals shareholders

• ▪Centessa Pharmaceuticals shareholders could receive up to $47 per share if the company's drugs win U.S. regulatory approval.
• ▪Centessa Pharmaceuticals shareholders will receive a substantial premium through the Eli Lilly acquisition offer.

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